One of the top financial priorities for most people is to get out of debt as fast as possible. This makes sense as most people want to minimize the interest they pay and have the peace of mind of not having to worry about monthly payments. However, some of the richest people in the world also take out some of the most debt even though they don’t have to. Elon Musk, for example, took out $61 million worth of mortgages in early 2019. While Elon wasn’t worth hundreds of billions at the time, he was worth tens of billions meaning that those mortgages were a minuscule portion of wealth. However, when you consider the taxes he would’ve had to incur to pay for those properties in cash and the growth that he would’ve enjoyed by just leaving the money in his investments, it starts to become clear why these billionaires prefer to just take out debt and invest all their money. This video explains the top reasons that billionaires take on so much debt and how billionaires use debt to their advantage.
Discord Community:
Timestamps:
0:00 – Billionaires & Debt
1:30 – Maximizing Returns
4:31 – Illiquid
7:07 – Minimizing Taxes
8:56 – Inflate Away Debt
10:45 – Time To Go In Debt?
Thumbnail Credits:
Reuters – Mike Blake
Yichuan Cao
Resources:
